Budget clears first hurdle

Michigan's public universities may be more inclined to keep tuition increases under 3 percent next year after the House Appropriations Higher Education Subcommittee revised and passed the higher education portion of Gov. John Engler's fiscal year 2000 budget recommendation.

The committee's eight members voted 5 to 3 yesterday to report the budget bill to the full Appropriations Committee, where it will be taken up for consideration tomorrow. All three Democrats opposed the bill, but that's not an indication of future partisanship on the issue, said Engler spokesperson John Truscott.

University President Lee Bollinger told the committee last week that the proposed increase for the University would result in a tuition increase of 4 to 5 percent.

Engler's proposal would give Michigan's 15 public universities a 1.5 percent across-the-board increase. Each university that increases tuition by less than 3 percent next year would receive a 1.5 percent bonus.

Bollinger said the University needs a 3.5 percent increase to maintain quality educational standards and would have to raise tuition enough to cover the difference, plus make up for the $5 million that would be forfeited by raising tuition more than 3 percent.

The amended proposal would add the tuition-restraint money to universities' base funding - rather than distributing it as a bonus. The modification means the extra 1.5 percent would factor into the appropriation universities would receive in next year's budget.

"It's much more of an incentive for the universities to hold tuition down," said Rep. Jon Jellema (R-Grand Haven), a committee member. "Now you don't want to lose that money as much."

The original proposal would have benefited the state's lower-funded universities and the change was made partly in response to Bollinger's statements, Jellema said.

"That's something we've been working on," Bollinger said. "The best result would be to eliminate the tuition-restraint funds."

Cynthia Wilbanks, the University's vice president for government relations, said the change helps, but still leaves room for improvement.

"That, from our view, is a step in the right direction," Wilbanks said. "We've certainly advocated that position."

Another aspect of the budget proposal groups the 15 state universities into four tiers to determine minimum funding.

Because the University already receives more funding than its tier's funding floor, the system would not allocate any additional funds to the University, while other schools could get up to an additional 5 percent increase from the state.

"That in my view is not good public policy," Bollinger said.

The tier system was passed in its original form, although Jellema said it's not flawless.

"It's not perfect but it's a good beginning," Jellema said. "For a one year budget, it's not bad."

Jellema said he is willing to look into revisions of the tier system in the future, but time constraints forced the committee to simply pass that portion of the proposal as is for now.

Rep. David Mead (R-Frankfort), vice chair of the committee, said it is unfortunate that the University would not benefit from the tier system.

"The University of Michigan is a very unique school," Mead said. But "we have the responsibility of seeing that we live within the budget," Mead said.

Wilbanks said the tier system may be modified as the proposal passes through the full House and Senate. Sen. John Schwarz (R-Battle Creek), who chairs the Senate Appropriations Subcommittee on Colleges and Universities, has said he will closely examine the tier system, she added.

"At this point we would anticipate change," Wilbanks said.

03-18-99